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IFRS S2: Climate-related Disclosures · 2024

Paragraphs 6–b

Management role

Practical guidance for preparing this disclosure. Use this card to identify the information to prepare, verify claims and organise supporting evidence. For exact requirements, always refer to the official IFRS source.

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Under review Editorial review in progress Prepared from official source material and published report evidence Use alongside the official IFRS source while human review is in progress.

Real report See how 3 companies report this ↓

Aditya Birla Fashion and Retail Limited

Also seen in

Hang Lung Properties Limited

SITC International Holdings Company Limited

To prepare this disclosure

5preparation fields↓ 5claims to verify↓ 5evidence areas↓ 3report examples↓

Disclosure focus

This disclosure asks an organisation to explain how management is involved in overseeing climate-related matters. In practice, it is about showing who in management has responsibility, what they do, and how climate issues are handled in decision-making and internal control. The focus is on the management role itself, not on describing climate performance or targets.

The practical question is whether this oversight is embedded across the organisation or limited to a few visible sites or senior individuals. A useful response should make clear the scope of management coverage, how often climate matters are reviewed, and how information moves from operational teams to decision-makers. Keep the explanation specific enough for a reader to understand how management oversight works in day-to-day practice.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.

Before you start

A quick mental checklist before you prepare this disclosure — tick each as you settle it.

Have we mapped which controls and procedures sit with management for this topic, and which are handled elsewhere? Is the delegation chain clear enough to show who owns the role, who carries it out, and where that sits in the organisation? Can we trace the figures or statements back to a named source, with evidence that matches the period we are reporting? Have we decided how this role links into finance, risk, audit and operations so the description is consistent across teams? If the role is passed down, do we also have a clear line of oversight showing who checks the delegated work and how often?

Preparation

Key information to prepare

Preparation field What to capture Evidence hint Owner

Control setup A plain description of the checks, approvals, and review steps used to manage this area, including who does what and when the controls operate. Process notes, control matrix, policy or procedure documents, and any internal sign-off records that show the controls are in place and used. Relevant control owner or process lead

Delegated authority map How decision-making is passed down, including which roles can act, what they can approve, and any limits or escalation points. Delegation matrix, authority schedule, role descriptions, and approval records showing the current chain of authority. Governance lead or delegated authority owner

Cross-function links How this area is connected into finance, risk, audit, and operations, including the handoffs, reporting lines, and shared review points. Cross-functional process maps, committee packs, reporting calendars, and meeting minutes showing the links in practice. Finance, risk, audit, or operations lead

Committee role holder Which management committee or named role is responsible for this area, and what responsibility sits with that group or person. Committee terms of reference, role profiles, organisation chart, and meeting records showing the named owner in practice. Committee secretary or role owner

Delegated oversight How the main governance group keeps watch over work that has been delegated, including review frequency, escalation, and challenge points. Board or committee papers, delegated reporting packs, minutes, and escalation logs showing oversight of the delegated work. Board secretary or oversight lead

＋ Show s2-6-b sub-elements (LRA working checklist)

Set out the controls and procedures used for this area. Describe how responsibilities are delegated through the organisation. Show how this topic is built into finance, risk, audit and operations work. Name the management committee or role owner responsible for it. Explain how the delegated role is kept under oversight.

How to prepare it

1Map the reporting process first: identify the controls and procedures used for this disclosure, then show how responsibilities are passed down through the organisation.

2Set out who does what: describe the delegation chain clearly, including the management-level owner or committee that carries the main responsibility.

3Show how the work connects across functions: explain how the disclosure process links with finance, risk, audit and operations so the information is joined up.

4Gather support for each point: collect the records, approvals, working papers or other proof that back the controls, delegation and oversight described.

5Prepare the final response in the required form: write the narrative or figures so they match the evidence and reflect the actual process in place.

6Record any gaps or changes, then check back against the official source to confirm your wording and content still align with the requirement.

Request the data

Request the management oversight evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

How is the day-to-day management role set up, linked into core control functions, and kept under oversight?

Use your organisation’s own names for committees, roles, approval routes and control processes first, then map them to the reporting disclosure. Keep the request in internal business language rather than framework wording, and check the source material before sign-off.

Weak request

Please provide evidence for management role under the disclosure.

Why it fails: It uses framework language only, gives no clue which internal team should respond, and does not say what records or details are needed. That makes it hard to gather usable evidence.

Better request

Please send the committee papers, role notes, and process documents that show how the management process is run, who owns it, how responsibilities are delegated, how it connects with finance, risk, audit, and operations, and how the delegated role is monitored. Include the period, version/date, owner, and meeting or approval reference. Use your internal names first, and I will map them to the disclosure.

Formal email template

Subject: Request for management oversight evidence for [reporting period]

Dear [name],

I am preparing the evidence pack for [reporting period] and need your help with the material that shows how the management-side process is organised and overseen.

Please send, for [entity / boundary], the documents or extracts that show:
- the control steps and approval route;
- how responsibilities are split or passed down;
- how the process connects with finance, risk, audit, and operations work;
- which management group or role owns it;
- how the delegated role is monitored.

Please include the period covered, the version/date, the owner, and any meeting or approval references. If your team uses different internal terms, please use those and I will map them later.

A possible LRA training template only — please adapt this to your organisation and check the source material before sign-off.

Many thanks,
[preparer name]

Short Teams / Slack version

Hi [name] — could you share the docs or extracts for [reporting period] that show the management process, who owns it, how duties are split, how it links to finance/risk/audit/ops, and how the delegated role is checked? Please add version/date and owner. Use your team’s own terms — I’ll map them later. Thanks.

Industry examples

Manufacturing

Context. A plant group uses an operations steering forum and a finance control team to manage reporting inputs and approvals.

Adapted request. Please share the process map, forum minutes, and role notes for [period] showing how the plant reporting process is controlled, who can approve changes, how duties are handed down, how it links to finance, risk, audit, and operations, and how the delegated plant lead is reviewed.

Example response. Attached are the process map, Q4 steering forum minutes, and role profile. The plant reporting lead prepares the pack, the finance controller reviews it, the operations director approves changes, and the risk team receives quarterly updates. Delegated actions are tracked in the action log.

Financial services

Context. A bank uses a management risk committee and control owners across finance and operations.

Adapted request. Please provide the committee pack, terms of reference, and oversight log for [period] showing the management committee owner, the split of duties, the links into finance, risk, audit, and operations, and how the delegated owner is monitored.

Example response. We have included the committee terms, the latest pack, and the oversight tracker. The management risk committee owns the process, finance and operations provide inputs, audit reviews the control design annually, and delegated actions are followed up at each monthly meeting.

Draft your disclosure

Notes that turn data into a disclosure

LRA training templates — adapt them to your organisation, and check the official source before sign-off.

Method note

Describe the basis used to identify the controls, responsibility split, linked functions, named owner and oversight route, including how each item was classified from the underlying records.

Context note

Explain what the disclosure shows about how the organisation has organised accountability, connected the process into wider business functions, and put oversight around delegated responsibilities.

Fluctuation statement

If the arrangements changed during the period, note whether this reflects a reallocation of duties, a new owner, stronger oversight, or a wider integration with other functions.

Content index entry

s2-6-b Management role — [location / page] / [notes]

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Preparation tools & forms

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01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Go deeper · s2-6-b

Learn to prepare this disclosure end-to-end

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

Explore the IFRS S1 & S2 course →

Assurance readiness

For each claim, check the evidence

ClaimRiskEvidence to check

We have a documented process for preparing the coverage figure, including who compiled it, what source data were used, and the checks applied before it was signed off.An assurer may find the figure was assembled ad hoc, with no clear method, weak sign-off, or unsupported adjustments.Preparation memo or methodology note; source data extracts; version history; sign-off record; evidence of review checks and any corrections made before publication.

We can show how we decided which activities, sites, or entities were included in the disclosed figure, and why anything outside that boundary was left out.The boundary may be inconsistent, selectively applied, or not aligned to the stated basis for the disclosure.Boundary-setting paper; inclusion/exclusion criteria; list of in-scope and out-of-scope items; management approval of scope decisions; reconciliations to underlying records.

The data behind the disclosure came from controlled systems or approved spreadsheets, and we carried out checks for completeness and obvious errors before reporting.Underlying data may be incomplete, duplicated, outdated, or manually altered without traceability.System reports or controlled spreadsheets; data validation checks; exception logs; evidence of duplicate or missing-item review; audit trail showing changes and approvals.

We retained evidence to support the reported figure, including the working papers, source records, and any assumptions used where direct records were not available.The reported number may not be supportable if source evidence is missing, assumptions are undocumented, or estimates cannot be traced back.Working papers; source documents; assumption log; estimate calculations; correspondence confirming data inputs; retention of supporting files linked to the final figure.

Before publication, the figure was reviewed by the relevant owner and checked against related internal reports so that it was consistent with other published information.The disclosure may conflict with other reported figures, or final publication may not reflect the reviewed version.Review and approval emails or workflow records; comparison to internal management reports; reconciliation notes; final draft versus approved draft; evidence of pre-publication consistency checks.

Evidence pack to prepare

The governing policy or written commitment behind this disclosureA methodology / definition note setting out how the disclosure was scoped and preparedSource-system exports the figures or facts were drawn fromThe internal approval / sign-off record for the disclosure before publicationMinutes or records evidencing the relevant engagement or consultation

Common reporting gaps

The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.

Common gaps

Mistakes to avoid when collecting the data

Wrong owner named

The team asks a committee secretary or board contact for the answer, instead of the manager who actually runs the controls and reporting process.

Using framework labels only

People request evidence in standard language, so the business cannot map it to its own roles, teams, or approval routes.

No clear boundary set

The data pull mixes the whole group with one business unit, because nobody defined which entities, functions, or locations belong in scope.

Wrong period basis

The collector uses a different reporting window from the one used in the rest of the pack, so the management role evidence does not line up with the same time frame.

Mixed counting method

Headcount, meetings, and approvals are combined in one file without stating whether the figures are unique people, events, or sign-offs.

Source labels stripped out

Original file names, system tags, or document references are removed, so reviewers cannot trace each item back to where it came from.

Separate groups merged

Evidence for different delegated roles is merged into one summary, which hides who did what and makes the chain of responsibility unclear.

Missing evidence trail

The pack is saved without dates, version history, or sign-off records, so nobody can show who checked the information before it was used.

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Where judgement is often needed

When a business unit joins or leaves part-way through the year

Set out the cut-off date you used for bringing the new unit into, or taking the sold unit out of, the management process description, and explain any period where the reporting line or controls were still being aligned.

Where local titles mean different things in different countries

Use the role names and committee labels that match how the organisation actually runs in each market, then explain how you mapped those local terms into one group-wide description.

Teams that sit close to the boundary of the management process

Decide whether a team is in scope based on its real decision-making and control responsibilities, and explain the rule you used for cases that are partly involved or only advisory.

Choosing the point in time for the process map

State whether the description reflects the year-end setup, the average position across the year, or the structure in place for most of the period, and explain why that basis was chosen.

Using estimates where records are incomplete

If you rely on judgement rather than direct records for any part of the management structure or control flow, say what was estimated, how it was derived, and where the estimate could differ from a measured view.

Rounding and level of detail in the write-up

Apply one consistent rounding approach across the disclosure, and make sure the level of summarising does not hide a material reporting line, committee, or control step.

Protecting personal data when naming people or roles

If naming individuals would create privacy issues, describe the role, function, or committee in aggregated form and explain the level of detail withheld and why.

Where finance, risk, audit, and operations overlap

For shared oversight or joint working, explain which team leads, which teams support, and how you avoided double-counting the same control or decision path.

Temporary cover or acting arrangements

If someone was covering a role for only part of the period, say whether you treated that person as the role owner for the whole period or only for the time they actually held the post, and explain the basis.

＋ Show 6 more− Show fewer

Examples

Illustrative examples

Synthetic, written by LRA — not from a company report, not text from any standard.

Illustrative (synthetic) example — manufacturing

We have a documented process for how climate-related decisions are made, who can approve them, and how those decisions move through the business. In our group, the sustainability lead prepares the analysis, the risk team checks it, finance confirms the numbers, operations tests delivery impacts, and the audit committee receives a summary of the main judgments and follow-up actions.
- Day-to-day work is handled by a named management lead, with authority to escalate issues to the executive committee.
- That lead is supported by a cross-functional group covering finance, risk, audit, and operations, and the board’s sustainability committee reviews the arrangement twice a year.
- In the latest year, 12 planned reviews were completed and 12 were completed on time, so 100% of the planned checks were finished within the reporting period.

Synthetic illustration only. Shows a clear chain from delegated responsibility to cross-functional checks and board-level review, with a simple completion metric that is internally consistent.

Illustrative (synthetic) example — retail

Our company uses a formal control framework for climate matters, with written procedures for escalation, sign-off, and periodic review. The sustainability manager owns the process, the finance controller validates the assumptions, the enterprise risk function challenges the key exposures, store operations feeds in implementation issues, and the audit and risk committee oversees the delegated work.
- The board receives a quarterly update on the delegated arrangement and any material exceptions.
- The management committee includes the sustainability manager, finance controller, risk lead, and operations director, and it met 8 times during the year; all 8 meetings included climate oversight, so 100% of meetings covered the topic.
- Of 5 action items raised by the committee, 5 were closed by year-end, and none remained open.

Synthetic illustration only. Demonstrates a named role owner, supporting functions, committee oversight, and a simple year-end action log with totals that reconcile.

Company reportsReal published reports

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How companies report S2-6-b in practice

Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.

Aditya Birla Fashion and Retail Limited

Retailing · India · 2025

Open report →

Aditya Birla Fashion and Retail Limited’s Integrated Annual Report 2024-25 provides evidence of management’s role in governance processes, controls, and procedures used to monitor, manage, and oversee climate-related risks (p.109). The report also shows that climate-related risks and opportunities are integrated into the overall risk management process, including finance, risk, and audit operations (p.111). However, the report is unclear on the delegation structure and oversight of delegated roles related to setting targets for climate-related risks, with related context present but no explicit disclosure (p.109).

Hang Lung Properties Limited

Real Estate · Hong Kong · 2025

Open report →

Hang Lung Properties Limited’s Sustainability Report 2025 provides evidence of management’s role in governance processes, controls, and procedures used to monitor, manage, and oversee sustainability-related risks on pages 215 and 222. The report also details management’s role specifically in overseeing climate-related risks on page 222. However, the report is unclear on the delegation structure of governance roles (p.214), the integration of sustainability risk management with finance, risk, and audit operations (p.228), and how oversight of delegated roles is exercised (p.222).

SITC International Holdings Company Limited

Water Transportation · Hong Kong · 2025

Open report →

SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report provides clear evidence of management’s role in governance processes, controls, and procedures used to monitor, manage, and oversee climate-related risks (p.192). The report includes some related context on the board’s oversight of climate-related risks and opportunities but does not clearly disclose the delegation structure or the oversight of delegated roles (p.184). There is no evidence found regarding the integration of climate-related governance with finance, risk, or audit operations.

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Check your understanding

Scenarios to work through

A group has split climate reporting work between the sustainability team, finance, risk, internal audit and operations. The sustainability lead drafts the narrative, finance checks numbers, risk reviews assumptions, and operations supplies site-level data, but the hand-offs are not written down.

QHave we described how the work is controlled and how it moves between teams, or do we need to set out the process more clearly?

Reveal model answer →Hide answer ↑

We should explain the practical controls around the reporting process and show how tasks pass between the teams involved. If the hand-offs, checks and approvals are only understood informally, the disclosure is too vague; it should be written in a way that a reader can see how the process is managed in practice.

Why this matters · Describe the working controls and the flow of responsibilities in plain business terms, not just the names of the teams.

A preparer has one executive who coordinates climate reporting, but several parts of the work are done by different managers. The draft says only that the executive is “responsible for climate reporting” and does not explain who does what or where authority sits when issues arise.

QDo we need to spell out the way duties are handed out and who owns each part of the process?

Reveal model answer →Hide answer ↑

Yes. The disclosure should make clear how responsibilities are divided, including who leads, who supports, and how authority is passed or escalated. A single label for one person is not enough if the actual arrangement involves several people or layers of review.

Why this matters · Show the delegation pattern, not just the name of the person at the top of it.

Climate reporting is linked to finance through budget assumptions, to risk through scenario work, to audit through assurance planning, and to operations through emissions data collection. The draft mentions these functions separately, but it does not explain how they connect or influence each other.

QHave we shown how climate reporting is built into the wider business processes, or are the links still too fragmented?

Reveal model answer →Hide answer ↑

We need to explain how the climate reporting work sits alongside and connects with finance, risk, audit and operations. The point is to show the integration in practice: where the information comes from, how it is checked, and how it feeds into other business processes.

Why this matters · The disclosure should show the connections across the business, not a set of isolated workstreams.

A company has a climate steering group chaired by the chief operating officer, with the head of sustainability as the day-to-day owner. The board receives quarterly updates, but the draft does not say what the steering group does, who owns the work, or how the board keeps an eye on the delegated arrangement.

QDo we need to identify the management group or role owner and explain how the board monitors the delegated setup?

Reveal model answer →Hide answer ↑

Yes. The disclosure should name the management group or role that carries the work, explain what it does, and show how the board or equivalent top-level group keeps oversight of that delegated arrangement. If the board only gets updates, the description should still make clear how it monitors the person or group doing the work.

Why this matters · State who carries the delegated role and how senior oversight is maintained.

Framework references

Relevant IFRS / ISSB requirements and related disclosures

Available framework references and nearby disclosures relevant to preparing this requirement.

IFRS / ISSB

s2-6-b

within IFRS S2: Climate-related Disclosures

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Primary

Related & explore

More in IFRS S2 →Browse full catalogue →Disclosure Library home →Search all disclosures →

Go deeper · s2-6-b

Learn to prepare this disclosure end-to-end

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

Explore the IFRS S1 & S2 course →

FAQ

Questions this page answers

For s2-6-b, what should I gather before I start drafting the disclosure?+−

The page says to prepare five datapoints first: control setup, delegated authority map, cross-function links, committee role holder and delegated oversight. It also has a step-by-step preparation section you can use to organise the work.

How do I use the step-by-step preparation section for s2-6-b in practice?+−

Use it as a working sequence to move from scoping and ownership through to drafting and evidence collation. The page is designed to help you prepare the disclosure rather than just describe it.

What evidence pack do I need to make s2-6-b assurance-ready?+−

The page includes an evidence pack with five items for assurance readiness. Use it alongside the five assurance claims to verify so you can link each claim to supporting evidence.

What are the five assurance claims I should check for s2-6-b?+−

The page lists five assurance claims to verify, each framed around a claim, the related risk and the evidence needed. That helps you test whether the disclosure is supported before it goes into a draft or assurance review.

How do I assign ownership for the s2-6-b disclosure across HR, ESG and other teams?+−

The page points you to cross-function links, a committee role holder and delegated oversight, which are the main ownership datapoints to capture. Use those to show who owns the process and where responsibilities sit across functions.

What common mistakes does the page flag for s2-6-b reporting?+−

It includes a list of common reporting gaps and mistakes so you can check your draft against typical weak spots. Use that list as a final quality check before sign-off.

How can I turn the s2-6-b data into a draft disclosure?+−

The page has a draft-output section with visualisation ideas, narrative starters and a content-index line. That gives you a practical starting point for turning the prepared data into a first draft.

Is there a workbook or download I should use for s2-6-b preparation?+−

Yes. The Download Centre includes a Prep & Assurance workbook in .xlsx format and a printable Library Card in .pdf format, which you can use to organise preparation and evidence.

Can I use the synthetic example on the s2-6-b page as a template for my own disclosure?+−

Yes, but only as an illustrative guide. The example is synthetic, so you should adapt it to your own data and make sure any figures in your draft are internally consistent.

How does the ESRS E1 correspondence help me with s2-6-b if I am reporting across frameworks?+−

The page says the closest ESRS correspondence is ESRS E1 (Climate Change), so it can help you spot where data may be reusable across reporting packs. It does not say the requirements are identical, so you still need to check the relevant framework separately.

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	Report A	Report B	Report C
Datapoint 1	✓ p.213	unclear	✓ p.87
Datapoint 2	✓ p.214	—	✓ p.90

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Management role

Key information to prepare

How to prepare it

Request the management oversight evidence

Notes that turn data into a disclosure

Preparation tools & forms

For each claim, check the evidence

Evidence pack to prepare

Common reporting gaps

Mistakes to avoid when collecting the data

Where judgement is often needed

Illustrative examples

How companies report S2-6-b in practice

Scenarios to work through

Relevant IFRS / ISSB requirements and related disclosures

Questions this page answers

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